Property Management: Collecting Rent

Goat on car

Recent Tenant story… “I’m in the parking lot at the grocery store and a parking spot comes open right in front! I swerve in and, at the very last moment, slam on my brakes.  There is a goat tied to a shopping cart right in front of me.  A goat! Right there!  I get out my car and untie the goat and put it in the back seat of my car.  Where do you take a goat in the city?  Anyway, I go in the grocer to get a few thing and I come back to find the goat in the front seat of my car chewing up an envelope.  My rent money!  Its gone.  The goat ate my rent money.”

Being in this business long enough will allow you to experience the greatest story telling in the world.  People are creative.  Ghost appear.  Tooth fairy’s steal.  Robbers wearing track shoes.  Of course, it’s all funny after the fact.  Part of our roll is seeing the smoke from the fire.  More importantly, we have a business to run.  This business requires collecting funds from customers to pay expenditures, including our fees, and delivering proceeds to asset owners.  Rental revenue runs our businesses.

An important part of  rent collections is remaining consistent and refraining from any form of favoritism.  If rent is due on the first and late after the fifth, then everyone paying after the fifth is assessed late fees.  If the evictions policy is notification on the tenth, then this notification schedule applies equally to all.

We have found the dividing line squarely rest on communication.  Tenants that communicate provide us with cause, occasionally, to stray from the lock step structure of payment receipts.  Along with this is the timing of said communication.  If prior to the late fee date, then there is a high probability of receipt of payment.  If ten days after notice to evict, then probability of receipt is severely diminished.

Whether the story includes farm animals or dollars melded together from roasting marshmallows,  these stories seldom assist in getting our vendors paid and owners in the black.  But they certainly can add some color to our day.  But keep your eye on the prize;  100% collections, each month, every month.

Comment here and tell us about some of your all time favorite “stories”.

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About This Blog
Multifamily Insight is dedicated to assisting current and future multifamily property owners, operators and investors in executing specific tasks that allow multifamily assets to operate at their highest level of efficiency. We discuss real world issues in multifamily property management and acquisitions. This blog is intended to be informational only and does not provide legal, financial or accounting advice. Seek professional counsel. 

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